“Give freely and become more wealthy; be stingy and lose everything. The generous will prosper; those who refresh others will themselves be refreshed.” Proverbs 11:24-25
When your children become adults, it’s best to anticipate that they will each have a unique relationship with money.
Despite being raised in the same household with the same values, children somehow, someway become independent thinkers who want different things out of life.
That independence will carry over to money, and this can complicate decisions for parents who want to help their children as they progress through various financial milestones. But before you write the first check, make sure you are familiar with the gift-giving rules. You want to know what success looks like—and when you might need to rethink your approach.
2026 Gift Limits
The IRS allows you to give anyone-family or not-a set amount of money each year without triggering a tax bill. For 2026, it’s $19,000 for individuals and $38,000 for married couples.1
Pro tip: Not all money you give to family members will count under the $19,000 limit. Money paid directly for someone else’s medical care, for example, is exempt from the limit. So is money paid directly to a college.2
What If I Go Over the Limit?
You’ll need to tell the IRS about it. When you exceed the annual gift limit, the IRS subtracts that amount from your estate tax exemption, which is $15 million per individual and $30 million for married couples.1
The federal and gift tax exemption of $15 million per person ($30 million for married couples)–established by the One Big Beautiful Bill Act–-does not have a scheduled expiration date. But keep in mind that Congress can change estate tax laws at any time.
Did you know? In 1913, ratification of the 16th Amendment of the Constitution gave Congress the right to “lay and collect taxes on incomes.” This amendment helped create the Revenue Act of 1916, which set up the estate tax that has been part of U.S. history since then.3
What About Our Family Home?
The same rules apply. Any property value beyond the annual gift tax exemption ($19,000/$38,000) will count against the lifetime gift tax exception.
But—and this is an important “but”—children will face a capital gains tax when they sell the home. The capital gains tax will be based on the sales price of the home and the original price you paid for it. So, if you have owned the home for some time, you might want to consider what the capital gains tax will be.2
Please let us know if you are gifting money to children or are making plans to start a program. We may have some ideas for you to consider.
- IRS.gov, 2026
- Prudential.com, April 16, 2024
- Investopedia.com, April 25, 2025
